JA16-019_WMATA_JA_12.30.15.pdf

JUSTIFICATION FOR OTHER THAN FULL

AND OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: To Be Determined ( TBD) Contract Number: TBD Task/Delivery Order Number: Not Applicable (NA) Procurement Title: Washington Metropolitan (Metro) Area Transit Authority (WMATA) SmartBenefits® Program Contracting Office: Defense Information Technology Contracting Organization-National Capital Region (DITCO-NCR) Estimated Value: $5,616,000.00 Statutory Authority: 10 U.S.C. 2304(c)(l)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Justification for OTFAOC Number: JA16-019

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the statutory authority of 10 U.S.C. 2304(c)(l ) and in accordance with FAR 6.302-1.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Defense Information Systems Agency (DISA) Resource Management Center (RMC)/Workforce Management Development (WMD) P.O. Box 549 Ft. Meade, MD 20755-0549

Contracting Office:

Defense Information Systems Agency Defense Information Technology Contracting Organization - National Capital Region P.O. Box 549 Ft. Meade, MD 20755-0549

2. NATURE/DESCRIPTION OF ACTION(S): This J&A supports the action to issue a sole source award to the incumbent, The Washington Metropolitan Area Transit Authority (WMATA), to support the mission requirements of The Mass Transit Subsidy Benefits program. For mass transit in the Washington DC area, the required source is the SmartBenefits® program. SmartBenefits® is a web-based program and the sole program for transferring benefits from employers to employees utilizing mass transit in the Washington DC metropolitan area. The Department of Transportation (DOT) uses this program to ensure that funds are available for the active participants each month.

WMATA requires federal agencies to use SmartBenefits®, as the primary means of providing transit benefits. The benefit is for commuting between the participant's residence and workplace.

WMATA SmartBenefits® Program-JA16-019

The current contract, HC1047-12-G-4001, is a Basic Ordering Agreement (BOA). This action will be issued as a blanket purchase agreement for a 1-year base period and two 1-year option periods. WMATA is the transit authority for the NCR and does not hold any GSA schedules. The expected cost of this action will not exceed $5,616,000.00 over the three-year contract period. This contract is required for the Mass Transit Subsidy Program, an entitlement program for federal employees.

This contract will also provide DISA the ability to eliminate third party costs associated with our participation in the SmartBenefits® program. In the past, DISA had the Department of Transportation (DOT) award and manage this program. By utilizing DOT's services to procure and acquire SmartBenefits® DISA was paying a seven percent fee in addition to the costs for the SmartBenefits®.

3. DESCRIPTION OF SUPPLIES/SERVICES: The SmartBenefits® is the required program for the Department of Defense National Capital Region Mass Transit Benefits subsidy program. Washington Metro Area Transit Authority is the required source and the only organization with the qualifications and capabilities to perform the master database functions that are required for operating the SmartBenefits® program. There are no other organizations that are either eligible or capable of performing the master database function that WMATA provides.

The current contract was awarded as a BOA on 12 January 2012. The base period of performance was 12 January 2012 through 11 January 2013 and three 12 month option periods. The last option was exercised 12 January 2015 and expires on 11 January 2016.

The ceiling for the cmTent contract is $12,006,000.00. However, the volume of purchases for the current agreement to date is $3,843,564.78. The ceiling on the current contract provided the flexibility to add additional participants if the need arose (new employees /participants, etc.).

WMATA offers parking and transportation as part of their SmartBenefits® program.

DISA has elected not to participate in the parking program in the past years. On 18 December 2015, the parity between parking and mass transit benefits was reinstated permanently under the Consolidated Appropriations Act, 2016, Protecting Americans From Tax Hikes (PATH) Act, Division Q which automatically includes parking benefits in the transit benefits program beginning in 2016.

The cost of this procurement is based on the size of the DISA workforce that is eligible and elects to participate in the SmartBenefits® program. At the present time there are 539 active mass transit benefit participants. This number fluctuates based on the time of year, locations from which and to which employees commute, eligibility of employees and the future participation by new employees. The participant level will be established at 600 employees. This covers the possible fluctuation in participants throughout the year. The maximum allowable benefit per participant for mass transit was $130 per month; however the limits have been increased to $255 with permanent parity between parking and mass transit monthly limits for 2016. The authorized transit benefit maximum is determined by Congress and that amount is specifically defined in Title 26 U.S. Code, § 132 (t)(2). If the authorized amount is changed, the contract ceiling will be adjusted to cover the cost of those changes (whether an increase or decrease of cost occurs).

The contract ceiling capacity is determines as follows:

Contract Year Base Year Option I Option 2

Period 12 Jan 2016 to 1 1 Jan 2017

12 Jan 2017 to 11 Jan 2018

12 Jan 2018 to 1 1 Jan 2019

Participants 600 600 600 Cost per Month per Participant $255.00 $260.00 $265.00

Cost per Year per Participant

$3,060 $3,120 $3,180

Annual Cost $459,000 $468,000 $477,000

Cumulative Total $1,836,000 $1,872,000 $1,908,000

4. IDENTIFICATION OF STATUTORY AUTHORITY: Pursuant to FAR 6.302-1 only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c) (1).

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS:

(a) Description of events.

For mass transit in the Washington DC area, the required source is the SmartBenefits® program. SmartBenefits® is a web-based program, and the sole program for transferring benefits from employers to employees utilizing mass transit in the Washington DC metropolitan area. The WMATA is the required source for the Mass Transit and the only organization authorized to manage the database of the SmartBenefits® program. There are no other organizations that are either eligible or that have the authorization, access, or capabilities to perform the master functions connected to the SmartBenefits® program. WMATA is the only organization who can electronically transfer electronic SmartBenefits® payments to WMATA Metro transit providers. The SmartBenefits® program is provided by WMATA for commuters in the National Capital Region.

(b) Justification.

(1) Minimum Government requirements. The WMATA was created by interstate compact, authorized by the United States Congress, and jointly funded by the District of Columbia with jurisdiction in suburban Maryland and northern Virginia. The program offers electronic auto load and reloadable capabilities for employers to assign value to Smart Trip cards for the employees authorized to participate in the SmartBenefits® mass transit program. There are no other organizations that are either eligible or capable of performing WMATA functions for the SmartBenefits® Program.

(2) Proposed sole source contractor. WMATA established a commuting system throughout the Washington D.C. Metropolitan (Metro) Area, including the states of Virginia and Maryland. WMATA, not only manages the SmartBenefits® Program, but regulates the fare machines, databases, and bus and rail systems used in the program as well. The SmartBenefits® Program allows the employers to allocate the dollar value of employees' monthly commuting benefit directly to reusable and rechargeable plastic Smartrip® cards that can be used for rail and bus travel throughout the Metro regions. WMATA is the only organization with the capability to provide SmartBenefits® program participants with the required access to use Metro (WMATA) commuting stations established throughout the

NCR.

(3) Discussion regarding cause of the sole source situation. WMATA is the only organization with the capability to provide DISA employees with access to the SmartBenefits® Program that is interconnected to the transit system that largely supports commuters within the NCR.

(4) Demonstration of unique source. The SmartBenefits® Program is operated and controlled through WMATA, including the extensive real estate involved in the support of its Metrorail and Metrobus operations. There are no other organizations that are either eligible or capable of performing the master database and transit functions that are connected to the services provided by WMATA for commuters in the NCR.

(5) Procurement discussion. WMD is in the process of planning for the execution of a sole source follow-on procurement for this requirement. The WMATA contract is the only solution for DISA to continue with the SmartBenefits® program in support of employees who commute to and from work using WMATA's Metrorail and Metrobus operations. WMATA was awarded a sole source contract on 12 January 2012 and the current and last option year expires on 11 January 2016. As described herein, competition is not possible in the procurement of the SmartBenefits® Program for DISA employees.

(6) Impact. It is not possible to pursue full and open competition as this is a required source. Additionally, there is no other organization capable of administering the SmartBenefits® Program. The WMATA is the only one responsible source and no other supplies or services will satisfy agency requirements. There is no other alternative than the exception to full and open competition.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL S O U R C E S : A Request for Information (RFI) was posted on FedBizOpps on 04 December 2015. No other sources were identified since the RFI yielded no responses.

7. DETERMINATION OF FAIR AND REASONABLE COST: The monthly amount needed per person is the current transit benefit subsidy maximum. Congress is responsible for determining the monthly transit benefit subsidy maximum which was initially $65 when the mass transit benefit program was established by Executive Order 13150 in 2000. The monthly maximum was incrementally increased to $100 in 2002, $105 in 2005, $110 in 2007, $115 in 2008, and then as a result of legislation in the American Recovery and Reinvestment Act (ARRA) in 2009, the maximum increased to $230 and again to $240 in 2012. After the sunset of the ARRA, in 2013 the transit benefit maximum reverted to $125, and then in 2014 it was increased to $130. The SmartBenefits® subsidy maximum for the requirement is currently set to cost $255 per person through the end of the calendar year 2016. The Consolidated Appropriations Act, 2016, signed on 18 December 2015 equalizes the parking and mass transit benefits program, resulting in the increase of the mass transit monthly limit for each participant from $130 to $255. The new BPA will start on January 12, 2016, with the maximum of $255 per person. Any future changes to the subsidy maximum will be determined by Congress. The proposed contract ceiling anticipates a $5 per year per participant increase. If the maximum increases more than that, it is anticipated the contract ceiling will be increased to cover this. The costs paid will be set by Congress and are not subject to negotiations. They are in line with the transit benefit subsidy maximum authorized and approved by Congress. The WMATA transit system as a whole is authorized by the United States Congress, and is jointly funded by the District of Columbia, together with jurisdictions in suburban Maryland, northern Virginia, and parts of Delaware, West Virginia, and Pennsylvania. WMATA was created by to be tri- jurisdictional and is not-for-profit. WMATA is prohibited from receiving any fee or profit, as they are a not-for-profit transportation authority. They are the area transportation authority and manage all major transportation hubs in the NCR and surrounding areas. Based on the foregoing, the contracting officer has determined the costs are fair and reasonable.

8. MARKET RESEARCH: Market research was conducted for the follow-on requirement and the results are that full and open competition is not appropriate for the action. The WMATA is a tri-jurisdictional organization authorized by Congress to operate the transit service in the Washington, D.C. metropolitan area. The WMATA is a large not-for-profit business that provides the SmartBenefits® Program as a commercial service to private and federal entities across the NCR. The SmartBenefits® Program offers electronic payment for the employees authorized to participate in the mass transit program using re-loadable Smartrip cards. Historically, DISA worked through the Department of Transportation (DOT) to acquire SmartBenefits® participation, but DISA was charged a seven percent fee by DOT. DISA reduced costs and has saved approximately $60,000 in contracting fees by eliminating DOT as a third party for participation in the program.

Although there are other commuter systems that provide means of transportation, such as the Maryland Transit Authority (MTA) and Amtrak services, they do not provide commuting services that are capable of accommodating commuters throughout the NCR region. The MTA and Amtrak services that are provided are only able to transport commuters to strictly Maryland areas, or limited locations in the tri-state region and have their own mass transit subsidy programs to pay for the benefits of the areas they serve.

WMATA is capable of transporting commuters across the entire tri-state region, via metrorail and metrobus commuter locations and those services are largely connected to the SmartBenefits® program. WMATA is the only capable source for meeting the needs of the government's requirement. There is no consolidating or bundling of task orders or other contracts for this follow-on procurement.

9. ANY OTHER SUPPORTING FACTS: The WMATA is the only responsible source and no other supplies or services will satisfy the agency requirements for the follow-on.

10. LISTING OF INTERESTED SOURCES: A RFI notice was posted to FedBizOpps on 4 December 2015 and no responses were received. Therefore, no other sources have been identified.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

BARRIERS THAT LED TO THE EXCEPTION TO FULL AND OPEN

COMPETITION:

(a) Procurement History: Contract: HC 1047-12-G-4001

Contractor: WMATA Basis for Award: Sole Source, OTFAOC Washington Metropolitan Area Transit Authority (WMATA) SmartBenefits® Program Value: $12M Period of Performance: 12 January 2012 to 11 January 2016 (base plus four-option years)

Department of Transportation (DOT) Contract:

Intra-Agency Agreement (MOA) Contractor: Washington Area Metro Authority (WMATA) Basis for Award: Economy Act of 1932 (15 U.S.C. 1535) and Administrative Working Capital Fund (49 U.S.C 327) Value: $2,500,000.00 Period of Performance: 1 October 2008 to 11 January 2012

(b) Market Research will continue to be conducted to examine and monitor the changes within the public transportation industry in the NCR.

(c) In accordance with FAR. 6.302-1(a), only one responsible source and no other supplies or services will satisfy agency requirements. On 4 December 2015 a RFI was posted to FedBizOpps which yielded no responses from potential sources.

Reasonable efforts were made to identify contractors who can fulfill the requirement by posting an RFI. Within 14 days after establishing the WMATA BPA this justification will be posted to FedBizOpps. Further, WMATA is capable of transporting commuters across the entire tri-state region via metrorail and metrobus commuter locations and those services are largely connected to the SmartBenefits® program. At this time the Government is not aware of another transit authority in the Washington Metropolitan Area that offers a program similar to SmartBenefits® on a transit network that transports commuters across the Metropolitan Area.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): An acquisition plan is not required (DARS 7.103 (S-91) (2) Exceptions).

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Carey E. Mantici SIGNATURE: See Separate PDF

TITLE/ORGANIZATION: Transportation Specialist/Program Manager/MP4

PHONE: 301-225-1481 DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Vicki Fowler SIGNATURE: See Separate PDF

TITLE/ORGANIZATION: Chief of Travel and Transportation (RM/MP4)

PHONE: 301-225-1 386 DATE:

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Vaneta Wills SIGNATURE: See Separate PDF

TITLE/ORGANIZATION: PSD/PL61

PHONE: 301-225-4135 DATE:

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: Gay Arnold SIGNATURE:

ORGANIZATION: PACA/DISA/DITCO

PHONE: 618-229-9517 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Vaneta Wills, (301) 225- 4135, vaneta.o.wills.civ@mail.mil mailto:vaneta.o.wills.civ@mail.mil Gay.Arnold Typewritten Text

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Gay.Arnold Typewritten Text January 8, 2016